Section 1 Short title
This Act may be cited as the “Simplifying and Strengthening Public Service Loan Forgiveness Act”.
Simplifying and Strengthening Public Service Loan Forgiveness Act
A BILL
To amend the Higher Education Act of 1965 to amend the public service loan forgiveness program.
Sec. 2 Public service loan forgiveness reform
Reducing payments—
In general— Section 455(m)(1) of the Higher Education Act of 1965 (20 U.S.C. 1087e(m)(1)) is amended—
in subparagraph (A), by striking “120” and inserting “60”; and
in subparagraph (B)(ii), by striking “120” and inserting “60”.
Effective date— The amendments made by paragraph (1) shall apply with respect to any eligible Federal Direct Loan which is in repayment status on or after the date of enactment of this Act.
Making waivers permanent— Section 455(m) of the Higher Education Act of 1965 (20 U.S.C. 1087e(m)) is amended by adding at the end the following:
“(5) Counting prior payments; simplifying program—Notwithstanding paragraph (1), in carrying out this section, the Secretary shall comply with the following:
“(A) The Secretary shall consider as a monthly payment under this subsection, any monthly payment made while the borrower was employed in a public service job on a loan made, insured, or guaranteed under this title before, on, or after the date of enactment of this paragraph pursuant to any repayment plan authorized under this Act.
“(B) The Secretary shall consider as a monthly payment under this subsection, a payment described in subparagraph (A) that was late or was for less than the full amount of the monthly payment.
“(C) The Secretary shall count as a monthly payment under this subsection, a month for which a borrower is serving on active duty (as described in section 101(d)(1) of title 10, United States Code) or serving in the Peace Corps, even if the borrower's loan was in deferment or forbearance and not in active repayment.
“(D) The Secretary shall allow a borrower of a Federal PLUS Loan, made on behalf of a dependent student, under section 428B who is employed in a public service job to consolidate such loan into a Federal Direct Consolidation Loan in order to receive loan cancellation pursuant to this subsection.
“(E) The Secretary shall allow the borrowers of a Joint Consolidation Loan or a Joint Direct Consolidation Loan who are employed in a public service job to consolidate such loan into a Federal Direct Consolidation Loan in order to receive loan cancellation pursuant to this subsection.”